Current LPG demand is estimated to be between 40 - 48,000 metric tonnes per year (kMT/yr), less than 1kg/capita/year. Myanmar’s neighbours have LPG per capita consumption levels many times higher than this. The country is short of LPG and this demand figure does not truly reflect the real market demand. LPG prices in the market continue to fluctuate with high volatility driven by the supply conditions. LPG prices are reported as reaching US$10/kg during supply shortages. With these conditions illegal activities thrive.
It is estimated that with a good supply structure LPG demand could be closer to 500kMT/year. Only about 9% of the Myanmar population, concentrated in the more affluent major cities, have access to LPG with the rest of the population relying on dirty and unsafe traditional fuels such as wood and charcoal. Apart from the LPG supply situation, other challenges include LPG safety issues, poor infrastructure and lack of know-how. All these impede the further growth of the LPG industry.
The opportunity exists for significant LPG demand growth in Myanmar if these challenges are addressed